Taking away from people in the community? Assessing short-term rentals in a rural Canadian context

Source abstract

The impacts of short-term rentals (STRs) on housing markets have become a topic of academic interest and public concern. Previous studies of STRs have often focused on large cities, emphasizing tourist demand for central locations and urban housing dynamics. However, the impacts of STRs extend into rural areas with high natural amenity values. This research focused on two small communities in rural British Columbia, Canada. Our goals were: (1) to quantify the levels of STR activity; (2) to assess the impacts of this activity on local housing markets; and (3) to identify the benefits that accrue to owners/hosts, particularly financial benefits. To address these goals, we collected and analyzed five years of data on STR activity and interviewed 21 key informants. We found 2–4% of the housing stock was utilized as full-time STRs – similar to levels reported in Canadian cities. This activity was driven by two key incentives: STRs generated significantly more income than long-term rentals and were exempt from residential tenancy law. The potential pool of rental housing was further reduced by increasing demand for second-home ownership. In combination, these factors presented a ‘triple threat’ to rental housing availability and affordability in the two communities.